What Is Congress Doing About Student Loan Debt?

It is no secret that the student loan debt bubble is about to burst, leaving far reaching effects on other financial industries crucial to the country’s economy. From employment to mortgage lending, the massive student loan debt carried by most graduates are predicted to take a serious toll if something doesn’t change soon. So what, if anything, is Congress doing to help?

Help On The Horizon?

Senator Elizabeth Warren has been fighting for new legislation to help alleviate the student loan debt burden experienced by the majority of graduates. The bill proposes to allow students to refinance their loans, reducing monthly costs and interest fees. Warren has stated that, “This exploding debt is crushing our young people. ” The bill is set to be introduced in detail in the coming weeks, something many are hoping is taken seriously at the legislative level. “Tying students to a lifetime of financial servitude as a condition of getting an education does not reflect our values,” said Warren.

At the state level, many representatives are calling for a freeze in tuition among some universities. Governor Scott Walker of Wisconsin has called for a tuition freeze at UW and also proposed for the university to add a flex option, which would allow for students to obtain a degree based on workplace knowledge they have gained. The idea is not only stop the significant yearly increases in tuition costs, but to allow for degrees of technical college students to be accredited by the higher institutions.

While no tangible results have been gained, efforts are still early in development and all are both appreciated and much needed to fix a broken system.

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